You are invited to beta test the new statewide See More...
Houston Real Estate Blogosphere
Houston Real Estate Blogosphere brings together all the blog posts of REALTORS from the Houston area in one place
Texas Commercial Cap Rates Rolling Back To Earlier Levels

Texas Cap rates on commercial real estate (CRE) are likely to move back to levels seen in 2002 and 2003, said Real Estate Center Chief Economist Dr. Mark Dotzour last week in Las Vegas.

Dotzour was speaking to an audience of 700 at the Real Estate Investment Securities Association's Annual Conference.

"This move from the historic low cap rates of 2006 and 2007 back to 2002 levels means that commercial property values are likely to be 30 percent to 45 percent below the values at the peak of the market in mid 2007," he said.

He said overall price declines will vary from city to city, with the biggest overall declines in the nation's largest cities.

“The bidding frenzy for commercial real estate was hottest in the largest metro areas, which traditionally attract bidders from all over the world," he said. "Smaller cities, such as Amarillo and Lubbock, never saw the same bidding pressures. Consequently prices never spiked and, consequently, they won’t have as far to fall.”

John Askins

Askins Online Real Estate Blog

Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

Post a comment...

To post a comment on this blog post, you must be an HAR Account subscriber, or a member of HAR. If you are an HAR Account subscriber, please use your e-mail address and password to post your comment. If you are a member of HAR, please use your HAR username and password to post your comment. If you would like to create an HAR Account account, please click here.

Here are the full legal terms you agree to by using this comment form.

View other posts from Askins Online Real Estate Blog

About Author
About Me
Welcome to Royce Realty, your source for Houston and Texas real estate. If you own property that you are thinking of selling I would be happy to provide you with a FREE Home Evaluation. If you are buyer, in this competitive real estate market, timing is everything. Many good homes are sold before...

4740 Ingersoll # 107
Houston, TX 77027
Phone: (713) 942-9200
Fax: (713) 864-5423

HAR Member Blogs Terms of Use & Content Policy